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What does CAF125 shown in Box 14 mean and is it taxable?

bgoldsmith
Level 2

I have a client who has "CAF 125" shown in Box 14 on their W2... Does anyone know what that stands for? I think it is cafeteria benefits. I understand it is not taxable at the federal level but is it taxable at the state level. The state is NY and the individual is a non-NYC resident and resides and works in Long Island.

Thanks!

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7 Replies 7
TaxReturnPros
Level 3

The CAF 125 does not change the way the return is prepared and/or filed. It's a deferment (pre-tax) of the employee's wage and should already be subtracted from the total amount reported in Box 1 of the W-2.

Just-Lisa-Now-
Level 15
Level 15
It stands for Cafeteria 125 Plan. Its informational only.

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kdwaite
Level 3

It is noting that your Box 1 wages were decreased for the pre-tax portion of your wages used to pay for Sec 125 cafeteria type benefits.  States may treat it differently.

bgoldsmith
Level 2

Does anyone know if it is taxable on the NYS return?

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IRonMaN
Level 15

I don't do NYS returns, but I would be really surprised if they made you add it back.  

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Accountant-Man
Level 11

NYS wages are already calculated on the W2. Are NYS wages = federal wages?

That's your answer: not taxable for federal, not taxable for NYS.

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Accountant-Man
Level 11

My son works for Google, so please keep him employed. Google:

caf 125

** I'm still a champion... of the world! Even without The Lounge.